Homeowners associations (HOAs) are simultaneously appreciated and reviled by homeowners, just about equally. While homeowners generally want the HOA to help preserve their community’s atmosphere and keep property values high, individual homeowners can resent the HOA’s efforts to enforce the Covenants, Conditions and Restrictions (CC&Rs) when they become the focus of those enforcement actions.
It’s important to remember that HOAs are not unrestricted in their power, and seemingly small issues can sometimes evolve into major legal disputes that can be time-consuming, frustrating and costly for the organization. Here are three situations that can turn into litigation:
Discriminatory practices
When an HOA enforces rules in a way that ends up unfairly targeting some homeowners based on factors like race, religion, sexual orientation or disability, that’s likely to provoke a challenge. If a homeowner feels like they are being targeted based on any special characteristic (such as disability or sexual orientation) that is protected under either the Fair Housing Act or California law. In that case, that can lead to a lawsuit. HOAs need to listen to their minority residents to make sure that they aren’t inadvertently creating discriminatory situations with new rules.
Inconsistent enforcement
As an HOA, you can’t threaten to fine one householder for not keeping their yard dandelion-free while giving another homeowner “a pass” on the same issue because you happen to know that they’re going through a rough time with a divorce, a health issue or some other problem. Your intentions may be pure, but residents will notice that the rules are only applied sometimes – or to some people. That could be a sufficient reason to mount a challenge.
Arbitrary rules
An HOA can’t just make up new rules as the governing members see fit. If there’s nothing in the rules that says a homeowner can’t have a 12-foot skeleton on your lawn wearing a Santa hat at Christmas time, then the HOA can’t suddenly demand its removal just because some of the board members find it repugnant. Know your CC&Rs, and make sure the HOA doesn’t try to exceed them.
If your HOA is in a battle with a homeowner, it may be wise to seek legal guidance so that you have a clear picture of your case’s weaknesses and strengths. You may be able to resolve the issue before it reaches the court.